Al-Zahraa Cooperative Board Dissolved and Violations Referred to the Public Prosecution

Dr. Amthal Al-Hawila, Minister of Social Affairs, Labor, and Social Development, issued a ministerial decision dissolving the board of directors of Al-Zahraa Cooperative Society, following the completion of audit and inspection procedures that revealed serious financial and administrative violations necessitating the implementation of legal measures in accordance with the law.

The minister emphasized that “the decision aligns with the ministry’s steadfast approach to safeguarding shareholders’ funds, reinforcing principles of integrity, transparency, and governance, and firmly addressing any transgressions that undermine cooperative activities or violate the regulations and laws governing them. She stressed that the ministry will not tolerate any impunity and will hold accountable anyone proven to be involved in such violations.”

She clarified that “the decision also referred certain incidents and suspicions to the Public Prosecution for appropriate action, to complete investigations and hold accountable all those found responsible in accordance with the law.” She added that “in order to ensure the continuity of services for shareholders and protect their interests from disruption, the ministry has appointed an interim manager to oversee the society’s affairs and operations during the transitional period, pending the completion of the legal and regulatory procedures mandated by law.”